Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Prieur Perspective: Markets Enter a Bottoming Phase?

By

Have policy actions, bank guarantees backstopped the global economy?

PrintPRINT

Investors' mood benefited last week from the potentially positive implications for the global economy emanating from the London G20 meeting and the decision by the Financial Accounting Standards Board to relax mark-to-market accounting rules. And the previous week's announcement of the Geithner plan to remove toxic assets from the balance sheets of banks was also still seen as a tailwind for stock markets.

Has the avalanche of policy actions and bank guarantees backstopped the global economy? If stock markets are a gauge of better tidings, it would seem that a bottoming phase might have started. Risk-taking investors pushed the S&P 500 Index to a straight 4-week winning streak, registering a gain of 23.3% - the strongest since April 1933. But the jury is still out on whether the bear is simply offering a temporary reprieve.

The performance of the major asset classes is summarized by the chart below, courtesy of StockCharts.com.


Click to enlarge


For discussion of the direction of stock markets, see my recent posts Video-O-Rama: The Road to Recovery, Schiff interviews Faber, Global Markets: Signs of Recovery? and Donald Coxe: Investment Recommendations (March 2009). (And do make a point of listening to Donald Coxe's webcast of April 3, which can be accessed from the sidebar of the Investment Postcards site.)

Economy

"Business pessimism remains deep and widespread across all industries and regions of the globe. Survey responses regarding hiring and equipment and software investment fell to record lows last week," said the latest Survey of Business Confidence of the World conducted by Moody's Economy.com. However, the Survey concluded that it was encouraging that businesses were becoming steadily less negative about the economy's prospects later this year.

< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE